How do states see the exit from this crisis: Some taxes increase, others decrease them
Germany, Italy, France and Sweden have announced that next year will decrease taxes to stimulate the economy. Other countries, like Spain, is preparing to increase taxes in an attempt to reduce its huge budget deficits of crisis.
Stimulating business will bring more money in the budget, and so we can reduce the deficit, said German Chancellor Angela Merkel. She thus justified the decision to reduce taxes for companies and individuals in 2010 to 24 billion euros.
The announcement comes after Germany and other European countries have taken similar decisions. In Italy, Prime Minister Berlusconi announced that consider reduction of taxes to support economic activity. The move was criticized by the Minister of Economy, Giulio Tremonti, a follower of budgetary rigor, which has threatened to resign. Italy followed the example of France, which reduced charges companies, a decision will be a tax exemption of 11.7 billion euros for companies in 2010.
In turn, the government of Sweden announced income tax cuts to stimulate employment. Unlike the measures of fiscal relaxation in these countries, there are states that are preparing to raise fees next year in an attempt to reduce deficits, Spain being one of them. Regardless of the method it will address the Member States, the European Commission urged European states that by 2011 to reduce the budget deficit closer to the level of 3 percent of GDP.